ABSTRACT
On the assumption that a recognised scheme is run by an employer, an employee is entitled to make tax effective donations to charities of their choice, up to a maximum of £900 during a year of assessment. The employees who wish to participate in the scheme authorise their employers to deduct the relevant sums from their salary, before calculating PAYE tax due, and pay over the sums to an agent approved by the Inland Revenue. The agent then pays the relevant sums to the appropriate charity. The donations by the employees are treated as deductible expenses. Thus, full relief is enjoyed by the donors even in respect of basic rate tax payers.
